[Introduction] In the first quarter of 2022, China’s propylene glycol import and export market fluctuated greatly by month in terms of quantity and average price. From the quarterly overall performance, in terms of import and export volume, the volume of imported propylene glycol in the first quarter decreased month-on-month and year-on-year, while the export volume increased month-on-month and year-on-year; in terms of average import and export prices, the average import price increased month-on-month and year-on-year, while exports The average price fell month-on-month and rose year-on-year.
Analysis of import data in the first quarter
From January to March 2022, the amount of propylene glycol imported by China was 4,771.62 tons, 4,689.83 tons, and 7,511.85 tons, respectively; a total of 16,973.3 tons, down 6.33% quarter-on-quarter and 6.06% year-on-year. The average import prices were US$2,688.07/ton, US$2,762/ton and US$2,433.03/ton respectively; the average was US$2,627.7/ton, up 8.91% quarter-on-quarter and 87.71% year-on-year.
The reasons for the decline in the total import volume and the rise in prices: on the one hand, the international crude oil, natural gas and other energy prices have risen, causing the production cost of products to rise, causing product prices to rise; on the other hand, the price rise has also suppressed some domestic demand for imported propylene glycol. In addition, China’s domestic supply is sufficient, and the self-sufficiency rate has increased, which has led to a decline in the number of imports. Of course, the overhaul of foreign equipment and the shortage of local supply are also one of the reasons for the decrease in the number of imports, especially the import of high-end products has a greater relationship with this reason.
From the perspective of major import trading partners, China imports propylene glycol mainly from: Thailand, South Korea, the United States, Saudi Arabia and Singapore. From this, it is concluded that the major foreign supplier brands are Dow, South Korea SKC and Singapore Shell.
Analysis of export data in the first quarter
From January to March 2022, the amount of propylene glycol exported by China was 15,877.11 tons, 12,612.33 tons, and 16,346.35 tons, respectively; a total of 44,835.79 tons, an increase of 25.11% quarter-on-quarter and a year-on-year increase of 61.03%. The average export prices were $2,612.13/ton, $2,451.94/ton, and $2,487.47/ton; the average was $2,517.18/ton, down 12.19% quarter-on-quarter and up 44.06% year-on-year.
The reason for the increase in the number of exports: The main reason for the increase in the number of exports is that there is a gap in the supply of goods due to the parking of foreign devices, while the supply in China is correspondingly sufficient; in addition, from January to March, it is the peak season for foreign demand, and the demand for antifreeze, snow melting agents, etc. is high; at the same time, China’s domestic price is in a downward trend most of the time, and it has a price advantage in the international market, which promotes the signing of export orders.
From the perspective of major trading partners, the top three countries and regions for China’s exports are Turkey, the United Arab Emirates and Indonesia. Constrained by changes in the international situation or other factors, the demand of individual European and Asian countries has declined, and the amount of China’s exports to these countries has also decreased accordingly. Even so, China’s export of propylene glycol in the first quarter of 2022 performed well.
Market Expectation Analysis
Entering the second quarter, international demand has turned weak. In addition, rising energy prices have pushed up the cost of raw materials and restrained downstream construction. It is expected that the export market of propylene glycol will not be as good as that in the first quarter.